section 32.2

Divorce Settlement Divorce Settlement Section 32.2Section 32.2

Understanding Business and Personal Law


Divorce and Its Legal Consequences

What You’ll Learn

How to identify factors considered in How to identify factors considered in determining alimony payments (p. 702)determining alimony payments (p. 702)

How to describe the way marital How to describe the way marital property is distributed when a couple property is distributed when a couple divorces (p. 702)divorces (p. 702)




What You’ll Learn

How to explain the laws regarding custody How to explain the laws regarding custody and support of children (p. 703)and support of children (p. 703)




Why It’s Important

Understanding the laws about alimony, Understanding the laws about alimony, property distribution, custody, and support property distribution, custody, and support can help you through a difficult divorce.can help you through a difficult divorce.




Legal Terms

alimony (p. 702)alimony (p. 702)equitable distribution laws (p. 702)equitable distribution laws (p. 702)sole custody (p. 703)sole custody (p. 703)joint custody (p. 703)joint custody (p. 703)




Alimony Marital Property Custody and Support of Children

Section OutlineSection Outline

Custody of ChildrenSupport of Children




Pre-Learning Question Pre-Learning Question

What is alimony?




Alimony Alimony

In the legal context of divorce, In the legal context of divorce, alimonyalimony is an allowance for support is an allowance for support and maintenance made to a divorced and maintenance made to a divorced person by a former spouse. It is not person by a former spouse. It is not intended as a penalty.intended as a penalty.




Alimony Alimony

There is no fixed rule for determining There is no fixed rule for determining the amount of alimony. the amount of alimony.

However, certain factors are taken However, certain factors are taken into consideration. into consideration.




Alimony Alimony

These include your:These include your:

Income and earning capacityIncome and earning capacityFinancial resourcesFinancial resourcesFuture prospectsFuture prospects




Alimony Alimony

Current obligationsCurrent obligationsThe number of dependentsThe number of dependentsThe number of former or The number of former or subsequent spouses subsequent spouses




Alimony Alimony

Also considered are your spouse’s:Also considered are your spouse’s:

Situation in lifeSituation in lifeEarning capacityEarning capacitySeparate property Separate property




Alimony Alimony

Contribution to your propertyContribution to your propertyAgeAgeHealthHealthObligations Obligations Number of dependents Number of dependents





How is marital property distributed in a divorce?




Marital Property Marital Property

Most states have laws intended to Most states have laws intended to assure equitable distribution of marital assure equitable distribution of marital property when a couple divorces.property when a couple divorces.





Equitable distribution lawsEquitable distribution laws allow allow judges to distribute property equitably, judges to distribute property equitably, or fairly, between a husband and wife, or fairly, between a husband and wife, regardless of who has title to the regardless of who has title to the property. property.





Judges consider the Judges consider the

Age of each spouseAge of each spouseIndividual earning power of each Individual earning power of each spousespouse





Length of the marriageLength of the marriageContributions of each spouse to the Contributions of each spouse to the marriage, including the value of marriage, including the value of homemaking serviceshomemaking services





How are children provided for in a divorce?




Custody and Support of Children Custody and Support of Children

Many states have passed laws to Many states have passed laws to protect children in the event of protect children in the event of divorce.divorce.




The parents of children born within a The parents of children born within a marriage are considered to be joint marriage are considered to be joint guardians of their offspring. guardians of their offspring.

If they break up, each parent has If they break up, each parent has equal right to custody of the children.equal right to custody of the children.

Custody of Children Custody of Children




32.232.2

Custody of ChildrenCustody of Children

Legal

custody Physical

custody

Is the parent’s right to make major decisions about the child’s

health, education, and welfare. Deals with the living arrangements of the child on a daily basis.

Gives all parental rights, duties, and powers to one parent.

The children live with the custodial parent, and visitation rights

are given to the noncustodial parent.

Divides the rights duties, and powers between the parents.

The children live with each parent at different times.

Sole

custody

Joint custody





Custody arrangements must be Custody arrangements must be approved by the court and can be approved by the court and can be made bymade by

Agreement between the partiesAgreement between the partiesMediationMediationThe decision of a judge The decision of a judge





In awarding custody, the court In awarding custody, the court attempts to determine what is in the attempts to determine what is in the best interests of the child.best interests of the child.




Support of Children Support of Children

Child support is a basic obligation of Child support is a basic obligation of every parent. every parent.

This obligation exists regardless of This obligation exists regardless of which parent has custody.which parent has custody.




State Guidelines State Guidelines

Federal regulations require that every Federal regulations require that every state adopt child support guidelines. state adopt child support guidelines. The guidelines must:The guidelines must:

Take into consideration all earnings Take into consideration all earnings and income of the noncustodial and income of the noncustodial parent.parent.





Have specific criteria and a Have specific criteria and a mathematical formula that mathematical formula that determine the support obligation.determine the support obligation.Provide for the children’s healthcare Provide for the children’s healthcare needs, through insurance coverage needs, through insurance coverage or other means.or other means.





Federal regulations also recommend Federal regulations also recommend that states adhere to the following that states adhere to the following principles when establishing their principles when establishing their guidelines:guidelines:





Both parents should share Both parents should share responsibility for support of their responsibility for support of their children in proportion to their children in proportion to their income.income.





The subsistence needs of each The subsistence needs of each parent should be considered, but parent should be considered, but the child support obligation should the child support obligation should never be set at zero.never be set at zero.





Child support must cover a child’s Child support must cover a child’s basic needs, plus ensure that the basic needs, plus ensure that the child is entitled to share in a child is entitled to share in a parent’s standard of living.parent’s standard of living.





Each child has an equal right to Each child has an equal right to share in his or her parent’s income, share in his or her parent’s income, subject to the child’s age, the subject to the child’s age, the parent’s income, income of a parent’s income, income of a current spouse, and other current spouse, and other dependents.dependents.





Each child is entitled to support, Each child is entitled to support, even if the parents were not married even if the parents were not married at the time of his or her birth.at the time of his or her birth.





A guideline should encourage the A guideline should encourage the involvement of both parents in the involvement of both parents in the child’s upbringing.child’s upbringing.




Enforcement Enforcement

A legal order for child support is A legal order for child support is necessary to assure enforcement of necessary to assure enforcement of child support. child support. The Uniform Interstate Family The Uniform Interstate Family Support Act (UIFSA) allows support Support Act (UIFSA) allows support orders of one state to be enforced in orders of one state to be enforced in every state.every state.




Enforcement Enforcement

The act also provides for the The act also provides for the registration of support orders in registration of support orders in different states so that people who different states so that people who do not pay can be found more do not pay can be found more easily.easily.




What is the difference between the custody of children and the support of children?




ANSWERANSWER

Custody means being a guardian, while support means providing money.




What is the difference between alimony and child support?




ANSWERANSWER

Alimony provides financial support for the former spouse, while child support provides financial support for the offspring.




Reviewing What You Learned

1. What factors are taken into consideration when determining the amount of alimony to be awarded?

Section 32.2 Assessment





The court considers the income and earning capacity of each spouse, financial resources, future prospects, current obligations, the number of dependents, and the number of former spouses demanding alimony.


Answer





Also considered are the other’s spouse’s situation in life, earning capacity, separate property, contribution to the other’s property, age, health, obligations, and number of dependents.


Answer





2. Explain the equitable distribution laws.






These laws allow judges to distribute property fairly between husband and wife, regardless of who has title to the property.


Answer





3. Describe the difference between sole and joint custody.






Sole custody gives all parental rights, duties, and powers to one parent; whereas joint custody divides the rights, duties, and powers between the parents.


Answer





Critical Thinking ActivityEnforcement What do you think might happen if the Uniform Reciprocal Enforcement Support Act were not enforced in all states?





Critical Thinking Activity AnswerEnforcement Answers may vary, but could suggest that states that didn’t enforce the act would be a haven for parents who didn’t want to pay child support.





Legal Skills in ActionAsset Distribution Milka and Marvin are divorcing after 25 years of marriage. Together they own a home worth $125,000, furniture worth $56,500, and two cars worth $22,300, and they have approximately $45,630 in cash.





Legal Skills in ActionAsset Distribution Based on the contributions of each spouse to the marriage, the judge has ruled that Milka will receive 66.6 percent of their total assets. What is the dollar value of Milka’s distribution?





Legal Skills in Action AnswerAsset Distribution $125,000 + 56,500 + 22,300 + 45,630 = $249,430; $249,430 x .666 = $166,120.

Divorce Settlement Divorce Settlement End of Section 32.2End of Section 32.2

section 32.2

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